Woodside, as the new operator of the SNE offshore oil development in Senegal, has started front-end engineering design (FEED) activities at the project by awarding the subsea FEED contract to Subsea Integration Alliance. Further FEED contracts are targeted to be awarded in early 2019, Woodside said.

The FEED work awarded to Subsea Integration Alliance, a partnership between Schlumberger and Subsea 7, is related to the SNE Field Development-Phase 1.

The work involves activities required to finalize the costs and technical definition for the proposed development to enable a final investment decision, targeted for mid-2019, Woodside said on Monday.

Woodside CEO Peter Coleman said the decision to start FEED activities was a significant step towards the development of Senegal’s first oil project.

He said: We plan to progress the SNE development towards the earliest possible commercialization of the discovered resources. Completing FEED activities will be a key enabler of a final investment decision.

“We are also excited to be moving forward on the SNE development as it is a key pillar of Horizon Two of our growth strategy. “As part of FEED activities, the RSSD joint venture will continue working with the Government of Senegal, local communities and our contractors to realize the potential opportunities and benefits from this nationally significant development,” he said.

Woodside has taken over the operatorship of the project from Cairn Energy. Other partners in the projects are FAR and the Senegal National Oil Company, Petrosen.

The SNE development concept is a stand-alone floating production storage and offloading vessel (FPSO) facility with supporting subsea infrastructure. It will be designed to allow subsequent SNE development phases, including options for gas export to shore and for future subsea tiebacks from other reservoirs and fields.

Phase 1 of the development will target an estimated 230 MMbbl of oil resources (P50 gross) from the lower, less complex reservoirs and an initial phase in the upper reservoirs. The FPSO is expected to have a capacity of around 100,000 bbl/day, with first oil production targeted in 2022.

In parallel to the start of FEED activities, the RSSD joint venture continues to progress project financing and the Environmental and Social Impact Assessment, Woodside said.